Osisko Gold Group board approves construction of the Cariboo gold project in British Columbia

Osisko Gold Group Inc. said on September 14 that its board approved construction of its Cariboo Gold Project in British Columbia. It expects a first gold pour in the first quarter of 2029, after 30 months of construction against 24 in the April 2025 feasibility study.

Osisko estimates the remaining capital obligation at C$990 million from August 1, 2026, net of about C$272 million incurred to July 31. The study put initial capital at C$881 million; Osisko says the two figures are on different bases, and that its update reflects costs incurred, engineering and procurement progress, inflation and reclassified operating costs. The estimate includes 16.5 per cent contingency and assumes about C$117 million of mining equipment is leased, under non-binding term sheets.

Osisko lists sources of up to C$1,637 million, including about C$837 million of cash at June 30, against uses of C$1,435 million, a projected surplus of about C$201 million. Osisko says that depends on the share sale closing, a definitive gold prepayment agreement and equipment financing assumptions.

Trafigura affiliate Urion Investments Holdings agreed to buy shares for about US$30 million (9,554,141 at US$3.14), subject to TSX Venture and New York Stock Exchange acceptance. Barkerville Gold Mines agreed non-binding terms with Trafigura for a gold prepayment of up to US$120 million at SOFR plus 6.00 per cent.